Bitcoin price corrected above the $66,000 resistance level. BTC fell below $64,000 and could extend losses in the short term.
- Bitcoin has started a new downside correction from the $66,000 resistance level.
- The price is trading below $64,500 and the 100 hourly simple moving average.
- According to data provided by Kraken, a major bullish trend line has broken below the support level of $64,500 on the hourly chart of BTC/USD.
- If this currency pair breaks below the support area of $62,500, a downtrend is likely.
Bitcoin Price Drops Again, Can Bulls Fend Off Further Losses?
Bitcoin price failed to extend its gains above the $65,500 and $66,000 resistance levels. BTC started a downward correction and traded below the $65,000 level.
There was a break below the major bullish trend line with support at $64,500 on the hourly chart of the BTC/USD pair. The downtrend pushed the price below the $64,000 level. A low was formed at $63,225 and the price is consolidating losses.
The recent downtrend is testing the 23.6% Fibonacci retracement level from the $66,026 swing high to the $63,225 low. Bitcoin price is currently trading below $64,500 and the 100-hourly SMA. If there is a new uptrend, the price may face resistance near the $64,000 level.
The first major resistance is near the $64,650 level. It is near the 50% Fibonacci correction level of the recent decline from the $66,026 swing high to the $63,225 low. A clear break above the $64,650 resistance could lead to another upside move in the coming session.
The next major resistance could be $65,500. The next major hurdle is $66,000. A close above the $66,000 resistance could push the price higher. If so, the price could rise and test the $67,200 resistance.
Another downside to Bitcoin?
If Bitcoin fails to break above the $64,650 resistance zone, it could continue to decline. Immediate support for the downtrend lies near the $63,250 level.
The first major support is at $63,000. The next support is currently near $62,500. If there is further loss, the price could move towards the $60,500 support area in the short term.
Technical indicators:
Hourly MACD – MACD is currently gaining momentum in a downtrend.
Hourly RSI (Relative Strength Index) – The RSI for BTC/USD is currently below the 50 level.
Key support levels – $63,225, then $63,000.
Key resistance levels – $64,650 and $65,500.